Ag Policy Blog

The gridlock at ports along the West Coast appears to be coming to an end.

In a statement emailed out just after 7 p.m. Pacific (9 p.m. Central) on Friday, the Pacific Maritime Association and the International Longshore and Warehouse Union announced they had reached a tentative agreement on a new five-year contract covering workers at all 29 West Coast ports. The deal was reached with assistance from U.S. Secretary of Labor Tom Perez and Federal Mediation and Conciliation Service Deputy Director Scot Beckenbaugh. The parties will not be releasing details of the agreement at this time. The agreement is subject to ratification by both parties, according to the statement.

“After more than nine months of negotiations, we are pleased to have reached an agreement that is good for workers and for the industry,” said PMA President James McKenna and ILWU President Bob McEllrath in a joint statement. “We are also pleased that our ports can now resume full operations.”

Perez had told both sides he was going to take their dispute to Washington, D.C., to settle if they didn't come to terms by the end of Friday.

The West Coast ports account for more than 40% of U.S. trade with effectively $1 trillion a year in goods moving through those ports.

Agricultural groups had become increasingly vocal in recent weeks as the port delays began to stack up product at ports, rail terminals and storage facilities.

The Los Angeles Times reported the agreement will still need to be approved by roughly 20,000 ULWU longshoremen. Moreover, the cargo delays at some of those major West Coast ports won't be eased overnight. "It will take weeks, if not months, just to clear the current backlog, port officials said," The LA Times reported.

http://www.latimes.com/…

The White House press secretary issued a statement shortly after declaring the announcement is great news for both parties "and a huge relief for our economy – particularly the countless American workers, farmers, and businesses that have been affected by the dispute and those facing even greater disruption and costs with further delays. Helping resolve this dispute has been a top priority, and last weekend the President directed Labor Secretary Tom Perez to travel to California to meet with the parties to help them reach a resolution because further delays would have been harmful to these workers and the economy."

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